Beware of the Commodity Monster
Welcome to the Why to Wow newsletter which is all about inspiring the hearts and minds of people worldwide with the Power of Differentiation. In the Why to Wow newsletter, I share my experiences over the last 40+ years helping leaders differentiate their brands and products. I hope it will inspire you to discover and share your own brand’s uniqueness with the world.
I hope every person reading this message does one thing: disappoint others because you refuse to act like a commodity. Most of us in all areas of business are being nudged, even pushed, into devaluing what we offer. And that’s just what your competitors and your clients’ procurement professionals want. Let’s disappoint them by focusing on what you bring to the table.
At Commodities do not have passion; they don’t have personalities. No one ever tattooed the name of a commodity on their body parts, but millions have tattoos of Harley-Davidson or the branches of the Armed Forces etched on their persons.
Did you know that 16 out of 17 companies go out of business by their tenth year? Why price and position yourself like the 16 out of 17 that will fail?
The Anti-Commodity Hero
I work with a brilliant leader, Kurt Breischaft, whose company produces copper rod. Copper is on the London Commodity Index. But Kurt and his team at SDI LaFarga Copperworks do not view themselves as a commodity—far from it. So, how do they avoid that?
They offer things that a commodity can’t. Their engineering team visits their customers’ locations to help them optimize the performance of their machinery. His team ensures that shipments are sent on time to meet customer needs. The company offers unique products, including a highly sustainable, super-refined copper rod that is environmentally superior.
This company will not behave like the competition because it has a passion for copper rod—their singular focus. Their competitors are most often mining companies that produce copper rod as a side venture. Refusing to treat their product as a commodity, COPPERWORKS branded the exterior of their 250,000-square-foot facility with their tagline: “This is where Copper Works.” No commodity can compete with them.
Difference-maker: Disappoint the purchasing agents, your competitors, and even some of your customers by not giving in to the Commodity Monster. Business scholar and author Peter Drucker summed it up perfectly: “In a commodity market, you can only be as good as your dumbest competitor.”
When you consider the consequences of falling prey to the commodity mindset—diminishing profit, low morale, and inferior quality—it’s well worth the time and investment. Go out and discover:
What you do that’s unique.
How your products are unique.
How your processes are unique.
How your technologies and equipment are unique.
How your team is unique.
There must be something about what you do that makes your company stand out. If not, you’d no longer be in business.
Difference-maker: Discover your differentiators, then promote them inside and outside your organization to defeat the Commodity Monster for good.